Knorr-bremse Ag · XETR:KBX
Knorr-bremse — Q3 2024 Earnings Presentation
35 slides from Knorr-bremse's earnings presentation, Oct 31, 2024
Slide 1: Q3/24 Financial Results
STRICTLY CONFIDENTIAL Q3/24 Q2/24 FINANCIAL Q3/24FINANCIAL RESULTS FINANCIALRESULTS RESULTS MARC MARC MARCLLISTOSELLA LLISTOSELLAII ICEO LLISTOSELLA CEO CEO FRANK FRANK FRANKWEBER WEBERII ICFO WEBER CFO CFO October August 8,31, October 31,2024 20242024
Slide 2: Key take-aways today
Key take-aways today RVS: strong execution and positive outlook CVS: resilient performance in challenging market environment BOOST/ GREENFIELD: Signaling1 deal closed in NA → Higher business share from NA Financing secured long-term: placement of two bonds, incl. first green bond Positive feedback o
Slide 3: IAA and InnoTrans underline innovation and technology power of KB
IAA and InnoTrans underline innovation and technology power of KB InnoTrans 2024 IAA Transportation 2024 Convincing customers with quality, innovation and system-solutions Electro-mechanical brake Zero Step Boarding EPS: Electric Power Steering Synact 3
Slide 4: Strong demand in Rail continues and Truck markets challenging as expected
Strong demand in Rail continues and Truck markets challenging as expected Current situation Outlook FY24 EU/ NA: solid growth continues in OE and AM Ridership levels globally FY24 > FY23 CN: good AM in 2024 and supportive HS EU: growth continues, shift to rail and Global: high order boo
Slide 5: Q3/24 – Strong KPIs driven by BOOST program & KB’s resilience
Q3/24 – Strong KPIs driven by BOOST program & KB’s resilience OPERATING REVENUES OF EBIT MARGIN ORDER INTAKE € 1.91bn 12.3% FREE CASHFLOW (+0.3% yoy1) € 1.94bn (PY: 11.5%) € 184m (+0.2% yoy1) (PY: € 230m) € 995m 16.0% (+9.5% yoy1) (PY: 14.4%) ORDER BOOK 132% € 7.06bn CCR (+4.4% yoy1) € 915m 10.0% (P
Slide 6: FCF, ROCE and NWC efficiency strongly improved
FCF, ROCE and NWC efficiency strongly improved CapEx [€m] NWC1 [€m] Free Cashflow [€m] ROCE1 annualized [%] % of sales Scope of days CCR 4.3% 4.2% 79.4 168% 72.1 55% 19.9% ROCE impacted 132% by consolidation ex. Sign. 17.1% 18.6% 71.3 of KB Signaling 16% 248 (main impact in 83 80 1.734 230 capital e
Slide 7: RVS – Strong OI and book-to-bill >1 in every quarter over the last 3 years
RVS – Strong OI and book-to-bill >1 in every quarter over the last 3 years Order intake [€m] Order book [€m] 1.09 Book-to-bill 1.13 OI higher yoy mainly +1.1% Order book remains on +10.0% driven by APAC high level 5,168 5,2221 132 1,121 ▪ EU: AM remaining on Organic order book +8.8% 1,019 -26 -4 h
Slide 8: RVS – All regions grew in AM business and converting well
RVS – All regions grew in AM business and converting well Revenue [€m] Op. EBIT [€m]/ op. EBIT margin [%] Org. revenues up 10% 16.0% Profitability increase 14.4% +160bps by ~160bps +6.7% EU: Higher in AM and 89 OE on high level +18.4% ▪ Good operating 995 leverage -25 APAC: CN positive in 28 -1
Slide 9: CVS – Solid order book of € 1.8bn well above long-term average
CVS – Solid order book of € 1.8bn well above long-term average Order intake [€m] Order book [€m] 0.95 Book-to-bill 0.90 OI mainly impacted -9.2% Decrease of order book -14.4% by EU 2,024 mainly driven by EU 962 EU: significantly 1,838 EU impacted by softer 0 823 weaker yoy truck market overall -
Slide 10: CVS – Solid AM and BOOST cost measures mitigated operating leverage
CVS – Solid AM and BOOST cost measures mitigated operating leverage Revenue [€m] Op. EBIT [€m]/ op. EBIT margin [%] Revenue moderately -9.1% lower 10.6% 10.0% Profitability still -60bps double digit 1,007 EU: significantly lower due to weak Solid AM support 0 OE & Trailer demand -14.7% resilienc
Slide 11: Guidance FY24 confirmed and revenues slightly increased
Guidance FY24 confirmed and revenues slightly increased Revenue [€m] Op. EBIT Margin Free Cashflow [€m] General Assumptions: ▪ Stable FX yoy ▪ Essentially stable geopolitical and 11.5-13.0% 550-650 macroeconomic conditions 7,800-8,100 11.3% 552 7,926 Divisional Assumptions: RVS: ex. Kiepe1 ex. Kiepe
Slide 12: First thoughts on 2025 – ongoing outperformance by KB ahead
First thoughts on 2025 – ongoing outperformance by KB ahead Market Strategy/ measures Financials ▪ Solid market continues ▪ Execution of BOOST strategy ▪ Revenue: ▪ AM growth > OE growth expected ▪ Management of revenue growth Mid-single-digit growth ▪ EU: ongoing high demand AND cost discipline ▪ O
Slide 13: Q&A / Backup
Q&A / Backup
Slide 14: Financial calendar 2024 – Upcoming events and FY2025 release dates
Financial calendar 2024 – Upcoming events and FY2025 release dates DATE EVENT LOCATION Oct 31 Q3/24 financial results Online Nov 12 UBS European Conference London Nov 13 DZ Bank Roadshow Frankfurt Nov 20 BNP Paribas Flagship Mid Cap Conference Paris Nov 28 Bernstein/ Société Générale Premium Review
Slide 15: Group Q3/24 – Order intake and order book
Group Q3/24 – Order intake and order book Order intake [€m] Order book [€m] 1.02 Book-to-bill 1.02 ex. Kiepe1 -1.8% 6,598 7,191 7,058 -1.9% 1,980 4 1,943 +4.4% Org. -26 -15 growth +0.2% RVS 5,168 5,2222 RVS 1,019 1,121 ex. Kiepe1 4,575 CVS 962 823 CVS 2,024 1,838 Q3/23 Organic M&A1 FX Q3/24 30.09.23
Slide 16: Group Q3/24 – Revenue development
Group Q3/24 – Revenue development Revenue [€m] Revenue [€m] By division By region ex. Kiepe1 -1.5% 1,893 1,939 1,910 1,939 6 1,910 Asia/ +4% -25 -10 Pacific 471 489 +0.3% SA 37 +27% 932 47 RVS 995 482 0% 484 -3.7%2 NA CVS 1,007 915 949 -6% 890 -2.4%2 EU Q3/23 Organic M&A1 FX Q3/24 Q3/23 Q3/24 1) Kie
Slide 17: Group Q3/24 – Profitability and EPS
Group Q3/24 – Profitability and EPS Op. EBIT [€m]/ op. EBIT margin [%] EPS2 [€] 11.5% 12.3% +80bps Fin. Result burdened by non-cash effects +5.2% >1.00 0.0% Hedging effect for KB 16 235 Signaling to fix agreed -2 0.81 0.81 US dollar purchase price 224 -3 +7.3% after signing: € 22m Existing Call/
Slide 18: Group Q3/24 – Bridge reported EBIT to operating EBIT
Group Q3/24 – Bridge reported EBIT to operating EBIT Op. EBIT [€m]/ op. EBIT margin [%] +80bps +0bps 235 223 219 224 14 (12.3%) (11.5%) 3 (11.5%) (11.5%) 134 159 134 RVS (14.4%) (16.0%) (14.4%) 164 (16.5%) 106 RVS: ~€ -4m 91 107 CVS (10.5%) 70 CVS: ~€ 2.5m CVS: ~€ 18m (10.6%) (10.0%) (7.7%) Q3/23 re
Slide 19: 9M/24 – Summary
Group 9M/24 – Summary OPERATING REVENUES OF EBIT MARGIN ORDER INTAKE € 5.90bn 12.3% FREE CASHFLOW (+3.1% yoy1) € 6.18bn (PY: 10.9%) € 248m (+1.5% yoy1) (PY: € 65m) € 2.98m 15.5% (+12.3% yoy1) (PY: 14.1%) ORDER BOOK 55% € 7.06bn CCR (+4.4% yoy1) € 2.92m 10.7% (PY: 16%) (-5.1% yoy1) (PY: 9.6%) 1) Orga
Slide 20: Group 9M/24 – Order intake and order book
Group 9M/24 – Order intake and order book Order intake [€m] Order book [€m] 1.06 Book-to-bill 1.05 -1.8% 7,191 7,058 ex. Kiepe1 -0.5% 6,598 91 +4.4% 6,216 6,182 Org. -72 -53 growth +1.5% RVS 5,168 5,2222 RVS 3,044 3,323 ex. Kiepe1 4,575 CVS 3,174 2,861 CVS 2,024 1,838 9M/23 Organic M&A1 FX 9M/24 30.
Slide 21: Group 9M/24 – Revenue development
Group 9M/24 – Revenue development Revenue [€m] Revenue [€m] By divison By region ex. Kiepe1 +0.7% 5,748 5,856 5,897 180 5,897 5,856 Asia/ +6% -86 -53 Pacific 1,374 1,454 +3.1% SA 109 +25% 136 RVS 2,746 2,976 NA 1,483 -2% 1,460 -3%2 CVS 3,112 2,922 EU 2,891 -2% 2,847 +- 0%2 9M/23 Organic M&A1 FX 9M/2
Slide 22: Group 9M/24 – Profitability and EPS
Group 9M/24 – Profitability and EPS Op. EBIT [€m]/ op. EBIT margin [%] EPS2 [€] 12.3% 10.9% +140bps Net Income burdened by non-cash effects Hedging effect for KB Signaling to fix agreed U.S. +13.5% >3.00 purchase price after +12.7% 105 725 signing: € 22m -3 2.36 2.66 639 -15 GT Emission Systems
Slide 23: Group 9M/24 – Bridge reported EBIT to operating EBIT
Group 9M/24 – Bridge reported EBIT to operating EBIT Op. EBIT [€m]/ op. EBIT margin [%] +140bps +120bps 725 694 14 16 (12.3%) 622 (11.8%) 639 (10.6%) (10.9%) 463 467 (15.5%) 387 385 (15.7%) (14.0%) (14.1%) RVS RVS: ~€ 1m RVS: ~€ -4m CVS: ~€ 16m CVS: ~€ 18m 314 300 285 279 CVS (9.2%) (10.7%) (9.6%) (
Slide 24: Group 9M/24 – KPIs
Group 9M/24 – KPIs CapEx [€m] NWC1 [€m] Free Cashflow [€m] ROCE1 annualized [%] % of sales Scope of days CCR 55% 79.4 3.8% 72.1 3.7% 16% 248 ex. Sign. 19.9% ROCE impacted 222 216 1,734 71.3 18.6% by consolidation 1,565 of KB Signaling 17.1% (main impact in capital employed) ex. Sign. 1,551 65 9M/23
Slide 25: RVS 9M/24 – Order intake and order book
RVS 9M/24 – Order intake and order book Order intake [€m] Order book [€m]2 1.11 Book-to-bill 1.12 +1.1% +9.2% 5,168 5,222 373 3,323 3,044 -72 -22 +12.2% 9M/23 Organic M&A1 FX 9M/24 30.09.23 30.09.24 1) Kiepe was deconsolidated end of January 2024 2) Orderbook 30.09.24: + € 238m Signaling and - € 593
Slide 26: RVS 9M/24 – Revenue and profitability
RVS 9M/24 – Revenue and profitability Revenue [€m] Op. EBIT [€m]/ op. EBIT margin [%] +8.4% 15.5% 338 2,976 14.1% +140bps -86 -22 2,746 +12.3% +19.4% 88 463 387 -3 -9 9M/23 Organic M&A1 FX 9M/24 9M/23 Organic M&A1 FX 9M/24 1) M&A: before PPA 26
Slide 27: CVS 9M/24 – Order intake and order book
CVS 9M/24 – Order intake and order book Order intake [€m] Order book [€m] 1.02 Book-to-bill 0.98 -9.2% -9.8% 2,024 3,174 1,838 0 2,861 -282 -31 -8.9% 9M/23 Organic M&A FX 9M/24 30.09.23 30.09.24 27
Slide 28: CVS 9M/24 – Revenue and profitability
CVS 9M/24 – Revenue and profitability Revenue [€m] Op. EBIT [€m]/ op. EBIT margin [%] -6.1% 10.7% 3,112 9.6% +110bps 0 2,922 -159 -31 +4.7% -5.1% 0 20 314 300 -5 9M/23 Organic M&A FX 9M/24 9M/23 Organic M&A FX 9M/24 28
Slide 29: Group – Income statement
Group – Income statement 2023 2024 2023 2024 1 1 1 1 in € million Q1/23 Q2/23 Q3/23 Q4/23 FY23 Q1/24 Q2/24 Q3/24 9M/23 9M/24 Revenues 1,907.6 2,009.9 1,938.8 2,069.4 7,925.6 1,974.2 2,012.9 1,909.6 5,856.2 5,896.7 Change in inventory of unfinished/finished products 5.4 12.0 9.1 -36.0 -9.6 52.1 4.3 3
Slide 30: Group – Cashflow statement
Group – Cashflow statement 2023 2024 2023 2024 € million Q1/23 Q2/23 Q3/23 Q4/23 FY23 Q1/24 Q2/24 Q3/24 9M/23 9M/24 Cash flow from operating activities -137.0 105.3 306.8 639.5 914.6 -48.3 219.0 257.6 275.1 428.3 Cash flow from investing activities -110.7 -69.1 -88.3 -142.6 -410.6 -8.1 -77.0 -574.9
Slide 31: Group – Balance sheet/ assets
Group – Balance sheet/ assets 2023 2024 1 in € million 31.03.23 30.06.231 30.09.231 31.12.23 31.03.24 30.06.24 30.09.24 Assets Intangible assets 771.2 769.2 776.0 770.6 778.6 770.2 957.9 Goodwill 691.9 688.1 693.2 696.4 688.5 689.2 864.1 Property, plant and equipment 1,820.0 1,798.0 1,804.3 1,863.9
Slide 32: Group – Balance sheet/ liabilities
Group – Balance sheet/ liabilities 2023 2024 1 1 1 in € million 31.03.23 30.06.23 30.09.23 31.12.23 31.03.24 30.06.24 30.09.24 Equity Subscribed capital 161.2 161.2 161.2 161.2 161.2 161.2 161.2 Capital reserves 13.9 13.9 13.9 13.9 13.9 13.9 13.9 Retained earnings 10.3 10.3 4.8 9.4 9.4 309.4 309.8 O
Slide 33: Group – Net Financial Debt / (Cash) Balance
Group – Net Financial Debt / (Cash) Balance in € million 30.09.24 31.12.23 31.12.22 Cash and cash equivalents -1,760.3 -1,291.4 -1,342.6 Short-term liabilities to banks 79.6 66.2 172.4 Short-term bonds and obligations 752.6 11.0 11.0 Short-term leasing liabilities 67.4 63.4 63.1 Securities 0.0 -141.
Slide 34: Investor relations contact
Investor relations contact Andreas Sophia Stephanie Spitzauer Kursawe Jaschiniok +49 89 3547 182310 +49 89 3547 187311 +49 89 3547 183466 Andreas.Spitzauer@knorr-bremse.com Sophia.Kursawe@knorr-bremse.com Stephanie.Jaschiniok@knorr-bremse.com 34
Slide 35: Disclaimer
Disclaimer IMPORTANT NOTICE This presentation has been prepared for information and background purposes only. It does not constitute or form part of, and should not be construed as, an offer of, a solicitation of an offer to buy, or an invitation to subscribe for, underwrite or otherwise acquire, an